Save Money Make Money: Episode 7

Concept 7: Use Income and Expenses Folio to Improve Savings

Write down your monthly income. Also write down your monthly expenses against each classification of expenses. Carefully go through all the expenses at least on a fortnightly basis and decide where, how much and how can you reduce the expenses in the forthcoming period(s). You will definitely get the right answers to save. Write down the new reduced limit of expenses against that expense classifications. You may get pleasant surprises.

An example of format is given below:

Income (Monthly)

• Combined income of family after taxes

Expenses (Monthly)

Fixed expenses

• House rent/home loan
• Children's fees
• Automobile (car) loan
• Any other loan
• Insurance premiums

Household expenses

• Grocery
• Transportation (gas, repairs etc)
• House help (servant, gardner, cook etc)
• Phones- landlines
• Phones- mobile
• Electricity
• Water
• Gas
• TV cable
• Internet
• Medical

Lifestyle expenses

• Clothing
• Entertainment
• Eating out
• Gymnasium/club membership
• Personal care
• Books
• Newspapers/magazines
• Travel
• Holiday

Other miscellaneous expenses

• Household gadgets
• White goods
• Festivals
• Gifts
• Socializing
• Others

Against each one of these classifications, write the actual expenses and then, the reduced projected expenses. You will get an idea of your savings per month by this method.

Also refer: http://home-tips-tricks.blogspot.com/

Save Money Make Money: Episode 6

Concept 6: Cut Down on Use of Land Line and Mobile Telephones

If you are not careful in using your land line phone(s) or mobile(s) prudently, the telephones bills can be pretty steep. Keep a watch on them. Observe carefully your expenditure in telephoning.

Instead, it will be better idea to chat and speak with your friends, family members, relatives, acquaintances and others by using the computer (in any case you are connected to Internet most of times and you are already paying for it whether you are using it or not). So, chat/speak via Internet using your computer.

On phones, in addition to the fixed charges, you are paying dearly for each call you make and receive (and the roaming charges are too high). By using Internet through computers your communication/chat/talk are all free, all you are doing is to pay only the fixed charges for Internet connection. You can speak/chat for hours with zero incremental expenditure.

Find out your savings using this method; you will save lots.

Also refer: http://home-tips-tricks.blogspot.com/

Save Money, Make Money: Episode 1

Concept 1: Eliminate Spending Your Money on Non-Essential Non-value Adding Activities

Don't throw your money in the activities which are non-essential, non-value adding and over which you don't have much control. You will save tons of money. You will also eliminate one big chunk of non-essential activities of your life which are absolutely non-value adding. This will give you extra time to spend on more useful actions.

Don't Do Things Given Below and Save Lots of Money (Eliminate Them)

• Gambling
• Betting
• Horse racing
• Visiting casinos for gambling and indulge in gambling there
• Smoking
• Taking drugs
• Drinking (Alcohol)
• Things you don't need (Don't buy them)
• Impulsive, emotional and/or impromptu buying that is non-planned
• Keeping up with the Joneses (Let me also buy since the others have it, irrespective of the fact that I don't need it)

Also refer: http://home-tips-tricks.blogspot.com/

Saving Money (Money Saved Is Money Gained): Scientific Approach

Ours is the Scientific Approach to Saving Money: Value Adding Approach

First Concentrate Saving on "A" Class Items and Later Worry About Saving on "B" and "C" Class Items

This will prove to be one most important space for you where you will like to come back frequently to find out large numbers of ideas and tips to save your money. And after all, money saved is money gained.

In every post here, which we will add pretty frequently, you will see around 5 ideas/tips on saving money and they will be practical. And with our approach you will save in tons!!

Our approach to saving money is scientific. It is primarily based on the concepts of "Value Adding Management (VAM)". In brief, it means, spend your money only on "value adding activities" and therefore, on "value adding things". Try to minimize and eliminate to spend money on "non-value adding activities" and therefore, on "non-value adding things". There will be occasions when you may not be able to clearly classify the activities as either "value adding" or "non-value adding". You may like to classify them as "non-value adding but essential". Example (in the lighter vein): gift to your spouse or your boy friend/girl friend. You may have to resort to spend your money in buying such a gift but make sure to apply yourself in buying a good, non-expensive yet emotions uplifting gift. It is called "non-value adding but essential expenditure". Put a good control on such expenses also and minimize these activities.

Other approach is to apply ABC classification to your expenses. Please remember that as per ABC rule, 90% of your expenses in terms of your currency will be just of 10% of all your buys. So, control your spending on these just about 10% of all of the items you buy. This way you will not waste your energy in controlling a large number of items which ultimately result only in very small savings. With ABC approach, with control on just about 10% of items of all the expenditure, you can save a good percentage of your 90% of total expenses which can turn out to be very significant amount.

So, stay tuned to this page. Won't you?

Also refer: http://home-tips-tricks.blogspot.com/